The SHFE tin market exhibited a typical pattern of "plummeting prices amid declining open interest," with open interest experiencing a cliff-like drop. [SMM Tin Midday Review]

During the afternoon session on December 16, 2025, the most-traded contract Sn2601 continued to decline, closing at 319,180 yuan/mt at midday, down 11,880 points from the previous day's settlement price, a sharp drop of 3.59%. The intraday low touched 317,170 yuan/mt, while the high reached 329,580 yuan/mt. The market exhibited a typical "plunge on position reduction" pattern, with open interest experiencing a cliff-like drop, indicating that the dominant force behind the decline was not bears actively opening positions, but rather existing bulls exiting the market. The price ultimately closed near the day's low.

Meanwhile, overseas tin prices showed relative stability but overall weakness. Overnight, the LME tin 3M contract closed at $41,095/mt, down 30 points or 0.07%. During today's Asian trading session, LME tin prices remained under pressure, as the market focused on changes in the global supply landscape. The off-season characteristics in traditional consumption sectors were evident, with no substantial recovery seen in the consumer electronics market, and demand in the PV sector continued to be sluggish. High tin prices persistently suppressed downstream purchase willingness, and trading in the spot market was sluggish. On the macro front, overseas macro sentiment fluctuated significantly, and uncertainty regarding the US Fed's policy path increased.

In the short term, SHFE tin prices broke below all recent key support levels, making it difficult to predict downside support.